German business sentiment has turned decisively positive, according to the latest S&P Global Business Outlook survey. The poll finds corporate optimism at its strongest level since early 2022, breaking a two-year spell of caution that had kept investment plans on hold. For the first time in two years, companies say they intend to raise capital expenditure, a shift S&P Global describes as a clear signal that firms expect domestic and external demand to strengthen. The brighter mood follows months of warning signs for Europe’s largest economy, including weak industrial output and concern over high energy costs, but suggests management teams now see scope to expand capacity rather than merely preserve cash.